Customization, Tech, & Speed lead 2018 Pizza Trends

2018 aims to be a benchmark year for the pizza industry. Data is showing a rise in the US and global pizza market, along with an increase in average unit sales for the top 50 chains. All while this is happening, the number of US pizzerias has actually fallen for a net loss of roughly 299 establishments. More people are ordering pizza more often from less overall places. Sounds like the market is refining itself.

But let’s take a deep dive into the pizza market and how we can anticipate what comes next. This will be part one of a two-part series, covering topics including consumer needs, headline news, the international market, menu trends, ordering practices, and, of course, the best technology company that sells pizzas.

So what is driving the pizza industry?

Consumer Preferences

Convenience is key when it comes to consumer needs. Pizza companies are really starting to understand this by offering many convenient ways to place orders. Through websites, social media, various online ordering mediums, and specialized delivery tech., consumers literally have pizza at their fingertips anytime, anywhere.

Without quality, however, convenience is rendered meaningless. Consumers still consider quality a primary driver when making their decision on where to buy a pie. Quality can carry a very subjective meaning though. What one person considers a trait of quality others may not, which is one reason there’s so much room to play in the pizza sandbox.

And finally, we can’t talk about consumer needs without discussing cost. As Americans dine out more and more often, they find themselves watching the cost of meals more closely. While most consumers are willing to pay a premium for artisan and specialty pizzas, they expect to pay “reasonable” prices for the more standardized items.

National News

Pizza loves to take the headlines, and 2018 will be no different. According to Business Insider, fast-casual pizza was the fastest growing segment in 2017 with no sight of slowing down. As it happens, Blaze Pizza holds the #1 position for fastest growing restaurant chain in the U.S.

We are also observing excellent growth via sales increases in the industry. North American chain restaurants have reported a growth of 5.83%, while independent restaurants have grown 2.65% per Euromotor. This shouldn’t worry independents too much, as consumers still often choose them over chains for reasons including community involvement, personalized service, and having shared customer values.

International Growth

Across the globe pizza is becoming a staple of the diet for many different cultures. It’s becoming especially popular in places like Africa and the Middle East. Euromotor has shown a growth from $4.29 billion in sales in 2015 to $4.66 billion in 2016.

Pizza Hut has noticed this growth and the potential in these markets. In Pakistan alone The Hut has planned to double its restaurants to over 150 in the next 5 years. These cultures view Western foods like pizza as a status symbol, leaving a rare opportunity for a company to initiate new levels of brand loyalty globally.

Conclusion

That’s quite a bit of info to absorb in one day. Check back the week after next for Part 2 of our 2018 Pizza Industry Review series.

Yum! + GrubHub

What Does the $200 Million Investment Mean?

As more and more consumers turn to delivery for their goods (think Amazon,Whole Foods, Express Scripts), more corporations are taking notice and finding ways to creatively bring their products to consumers. Yum! Brands, parent company of Taco Bell, KFC, and Pizza Hut, is leading by example by investing a cool $200 million into food delivery service GrubHub.

With representation in over 1,300 U.S. cities and London, GrubHub connects diners to more than 75,000 restaurants. Yum! Brands’ investment shows a belief in the power of GrubHub’s service while taking a long term view on franchisee support by helping to ensure that delivery options will be more readily available to the restaurants’ customers.

Consider that between Taco Bell and KFC, there are more than 10,100 locations in the U.S. While GrubHub does not currently have representation in all of the current areas these restaurants reside, it’s obvious that Yum! brands wants to ensure they have every opportunity to make their way into these markets.

The hope is that this partnership will not only lead to incremental sales increases and larger per check orders, but also help to raise awareness for online delivery services and attract more franchisees who can see the benefit of having an additional sales channel. By giving franchisees more opportunities to succeed through creative, forward-thinking channels, Yum! puts itself in a very attractive light for future growth.